Outokumpu takes further actions in response to the weak stainless steel market

STOCK EXCHANGE RELEASE
February 3, 2009 at 12.50 pm

Due to the very weak stainless steel demand Outokumpu continues to
cut production and starts negotiations with personnel regarding
temporary and permanent layoffs in several of its operating
countries. The planned actions are expected to result in temporary
layoffs for over 2000 people and reduction of about 250 jobs. This
combined with the planned 450 job reductions in Sweden announced in
December 2008 would result in reduction of 700 jobs in total.

The order intake has continued to be very low in early 2009 and the
company is taking adjustment actions to reflect the difficult market
situation. In order to secure cost efficiency and to improve
profitability Outokumpu will continue to cut production and address
both fixed and variable costs. The total fixed cost-savings from all
announced actions are estimated to be in the range of EUR 100 million
in 2009.

CEO Juha Rantanen: "The past weeks have shown that there is no marked
improvement in stainless steel demand. Unfortunately it is now
evident that the measures we announced in December are not sufficient
in this situation. We regret that these cost-saving actions affect
our employees heavily. Our responsibility is to ensure our
cost-efficiency and financial strength in this extremely challenging
market environment."

Planned adjustment actions in different units

A number of short-term measures to save costs and to adjust to lower
production volumes were agreed at Tornio Works in December for a
period that ends in mid-March 2009. As the order load of Tornio Works
continues to be low these cost-savings are not sufficient. Outokumpu
plans to temporarily cease its ferrochrome production (the Kemi mine
and Ferrochrome Works), temporarily idle one of its melt-shops and
reduce shifts at almost all steel production lines. Due to these
production cuts the company will start new statutory negotiations on
temporary layoffs at Tornio Works in Finland. The negotiations
concern about 2000 people, also office and maintenance employees. The
layoffs would be either full or part-time depending on the production
line and duties and they would continue until the stainless steel
market improves. The statutory negotiations are expected to take six
weeks. Tornio Works in Finland employs 2 300 people.

Outokumpu Stainless Tubular Products (OSTP) produces welded stainless
steel tubes, pipes and fittings, and employs currently 1 100 persons.
Due to the difficult market situation the total of 150 job reductions
are planned in Sweden (Nyby, Örnsköldsvik, Storfors and Molkom),
Finland (Jakobstad, Tuusula and Veteli), Estonia and Canada. In
Finland the negotiations concern both temporary and permanent
layoffs.

In Outokumpu Group Sales & Marketing organization the adjustment
actions are planned to result in job reductions in most of the sales
companies and service centers in different countries. The target is
to reduce approximately 50 jobs with layoffs and voluntary
arrangements. Additionally about 80 employees are planned to be
temporarily laid-off. The negotiations will proceed according to
local legislation in different countries. Approximately 1 400 people
are currently employed by Group Sales & Marketing.

In the UK approximately 90 jobs are planned to be reduced in the
coming months as a result of reduced shifts in the Sheffield
melt-shop, the cost-saving measures in Outokumpu's Alloy Steel Rods
(ASR) and the sales company's integration of the former SoGePar
activities into its Sheffield based operation.  These reductions in
the UK together with the previously announced closure of the
Sheffield Special Strip plant will take the number of Outokumpu
employees to approximately 600 people in the country.

In December Outokumpu started negotiations with personnel
representatives with the aim to reduce about 450 jobs in the
company's Swedish production sites. These negotiations are still
ongoing. In Outokumpu's head office in Finland the negotiations have
finished and resulted in two weeks' temporary layoff of all
employees. Additionally some 20 positions will be reduced.

If the market situation continues to be difficult, Outokumpu is
prepared to take additional action to improve its profitability.

Outokumpu operates in some 30 countries and employs more than 8000
people.

For further information, please contact:

Päivi Lindqvist, SVP Communications & Investor Relations, tel.+358 9
421 2432,
mobile +358 40 708 5351
Antti Pihko, SVP - Tornio Works, tel. +358 16 454 278, mobile +358 40
848 2948
Lasse Johansson, SVP - OSTP, tel. +46 226 82602, mobile +46 70 61
82602

OUTOKUMPU OYJ
Corporate Management


Ingela Ulfves
Vice President - Investor Relations and Financial Communications
tel. + 358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com
www.outokumpu.com